Glossary · Business quality

Net margin

Final profit after every cost, interest and tax, as a share of sales.

Why it matters

This is what is left for shareholders. It can be distorted by one-off gains or charges, so check it against operating margin.

How to read it

Large gaps between operating and net margin usually mean heavy interest costs or unusual items.

Related

In the Cluenex app, this explanation opens next to every net margin figure, with the live reading for the stock you are looking at. Open it in Cluenex